KAIZEN Wha-a-a-t?? How to prepare for an effective Kaizen ... · PDF fileo “Walk the...
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Sterling Tallahassee Summit
February 10, 2017
KAIZEN Wha-a-a-t?? How to prepare for an effective Kaizen EventThe Who, What, When, Where & Why
Debra Shultz – Florida, Power & Light, Senior Training & Events Manager, Corporate Operational Excellence
• NextEra Energy is North America’s top producer of energy from wind and sun
NextEra Energy, Inc. is a leading clean energy company
About Our Company
energy from wind and sun, with a greenhouse gas emissions rate among the lowest of any large power company
• We operate more than 42,000 MW of generating capacity
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School of Operational ExcellenceAll Rights Reserved
Copyright 2014 by NextEra Energy, Inc.
• 2012 revenues totaled approximately $14.3 billion
• We have nearly 15,000 employees in 26 states and Canada
No. 161 on Fortune 500
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• $60 B market capitalization(1)
• 46 GW in operation(2,3)
• $88 B in total assets(3)
• Partnership with
NextEra Energy is comprised of two strong businesses supported by a common platform
• One of the largest electric utilities in the nation by retail MWh sales
• The world leader in electricity generated from the ind and s n
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retail MWh sales
(1) As of October 31, 2016; Source: FactSet(2) Megawatts shown include megawatts sold to NEP(3) As of September 30, 2016
the wind and sun
Engineering & Construction
Supply Chain
Nuclear Generation
Non-Nuclear Generation
Florida Power & Light Company
• FPL is the largest electric utility in Florida
FPL is one of the nation’s largest regulated utilities
– 4.6 million customer accounts
– Operating in 35 counties
• FPLs typical customer bill is the lowest of Florida’s 55 electric utilities
– Typical customer saves an average of $31 a month compared to other Floridians
– About 26 percent lower than latest national average
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School of Operational ExcellenceAll Rights Reserved
Copyright 2014 by NextEra Energy, Inc.
national average
• FPL has three solar facilities in DeSoto, Brevard and Martin Counties
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• Largest wholesale generators of electric power in the U S
NextEra Energy Resources is a successful wholesale generator with a concentration of clean energy assets under long-term contracts
Energy Resources Portfolio
in the U.S
• In 2012, we added roughly 1,500 megawatts of new wind generation, more than any company ever
• We now operate more than 10,000 net MW of wind capacity in 19 states and Canada
• Seven solar plants in the
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School of Operational ExcellenceAll Rights Reserved
Copyright 2014 by NextEra Energy, Inc.
• Seven solar plants in the Mojave Desert provide 360 MW of solar power, which is capable of meeting the energy needs of more than 230,000 homes at peak production
Let’s start with the basics - How should we pronounce it?
• A really famous sports car has the same problem!https://www.youtube.com/watch?v=hyc96YnwGD4
• Do you pronounce it Kaizen or Kaizan? Which is it? https://www.youtube.com/watch?v=_EbZhR9pJSE
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This Kaizen training includes three separate topics
Today we will focus on the Kaizen Overview
Part 1 - Overview Part 2 - Facilitation Part 3 - Execution
• Kaizen Overview
• Kaizen Approaches
• Team select
• Principles
• Lean Tools and Techniques
• Facilitation skills
• Leading Teams
• Idea Generation & discussion
• Tool selection
• Overcoming roadblocks
Part 1 Overview Part 2 - Facilitation Part 3 Execution
• Preparation and Execution deep drive
• Detailed Pre-Planning
• Execution Roadmap
• Post Kaizen
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q
• Action Plan • Project Mgmt. • Post Kaizen
steps (e.g. Report out)
Today’s “WHAT” -- Kaizen Overview
Agenda
• Kaizen Defined
C it i f S l ti K i• Criteria for Selecting a Kaizen
• Event vs. Blitz
• Kaizen Process Overview
• Key Members
• Stages (Pre-Kaizen, Kaizen, Post Kaizen)
P i i l
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• Principles
• Timeline
• Tools used in Kaizen Events
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Is it a Six Sigma, Lean or Kaizen problem? When should we choose Kaizen?
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Understand Six Sigma, Lean, and Kaizen methodologies in order to create an effective business improvement strategy
• Structured approach to problem solving
Kaizen Defined
What is a Kaizen?
• Bias towards action
• Based on the philosophical belief that everything can be improved
• A select team work a problem within a short amount of time
• Applies to all processes
Kai = Good Zen = Change
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• Applies to all processes, even those that cross organizational boundaries
Kaizen is a rapid focused application of Lean principles to reduce waste and improve a process
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What is the difference between a Kaizen Blitz and an Event?
Activities Kaizen Blitz Kaizen Event
1 to 2 months prior
Perform Needs Analysis – Determine which approach is neededGEMBA - Go See
Time Frame 1 - 2 days 3 - 5 days
S S ll l bl L l blScope Smaller scale problems Larger more complex problems
Pre- Kaizen Meet with Sr. Leadership Develop Team Charter
SIPOCCurrent State Map
Data Collection & AnalysisSelect Team Members
Identify / Interview SMEsSelect Activities for Event
Team Training
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Kaizen Review VOC requirementsMap Future StateID improvements
Create Action PlanDaily out-briefs / Report outs
Create Plan for follow-up actions (BLITZ ONLY)
Post Kaizen Track action items and primary metricStatus reporting
30 / 60 / 90 Day follow-ups
1. Identify an opportunity
2. Analyze the process
Continuous cycle of Kaizen activity has seven phases:
A Kaizen event is a process focused improvement method
2. Analyze the process
3. Develop an optimal solution
4. Implement the solution
5. Study the results
6. Standardize the solution
7. Plan for the future
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Iteration is the continuous repetition of an operation or procedure –hence the term “continuous improvement”…
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Kaizen Mirrors the DMAIC Framework
Parallels DMAIC phases using Lean Tools
prior to event)– Clearly define the Kaizen objective
– Select team members, perform logistics, notifications, data collections, and prepare project charter
and beginning of event)C t lid t th l t i l di
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– Create or validate the value-stream map including a resource flow layout for all the process (people, paper, material, information)
– Carefully observe, then collect needed metrics for tasks or steps in the selected process
• Analyze (Mid-Event)– Quickly validate root causes and identify sources of waste
Review waste elimination techniques then brainstorm process
Kaizen Mirrors the DMAIC Framework
Parallels DMAIC phases using Lean
– Review waste elimination techniques, then brainstorm process improvements for eliminating non-value added tasks and reducing variation
• Improve (Mid-Event) – Map the ideal state and / or future state process (see next page)
– Test the improvements, if possible, then fine-tune to ensure the process is capable
– Create action item list to accomplish improvements
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Create action item list to accomplish improvements
• Control (Post Event)– Create Standard Operating Procedures and training for
employees
– Present results to Management Team for immediate approval
– Complete follow-up, monitor results over time
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Let’s Get Started! To Kaizen, or not to Kaizen….That is the question
Criteria for Selecting a Kaizen
I th bl / it ti li k d t th t t i l ?• Is the problem/situation linked to the strategic plan?
• Are the data readily available?
• Has a process owner(s), stakeholders, subject matter experts
been identified?
• Is the process highly visible to staff or customers?
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• Is the process highly visible to staff or customers?
• Does the project have a high probability for success?
• Is the scope narrow enough for a kaizen event?
Kaizen events should foster an environment of openness, innovation and teamwork
Principles• Turn off / tune in – it is a FASTFAST rollercoaster ride
• Management is visible to supportg pp
• There is no rank among team members
• Be open minded – no agendas
• Respect each other
• Stay on task
• Foster a positive attitude
• Ask questions and participate
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• Think of “out of the box” ideas -go for Quantity
TEAM = Together Everyone Achieves More!
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Who should attend the Kaizen event?
Key Attendees
• Subject matter experts
P ( )• Process owner(s)
• Additional Stakeholders
• One or two front-line workers (individuals that perform the process on a regular basis)
• An outside novice (a “Nun” - someone unfamiliar with the process) if applicable
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ANYONE who touches the process!!!
• A facilitator from outside the functional area to prevent that individual from unconsciously steering the event in a particular direction
Kaizen preparation is importantimportant for the success of the event
Pre-Kaizen – Create the Charter
Conduct pre-planning meetings to develop theConduct pre-planning meetings to develop the Charter with your team - include the following:
• Problem Statement
• Project Goals
• Attendees
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• Scope
• Timeline
• Project Sponsor(s)
• Data Sources
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Walk the process to gain a high level understanding of the flow, inputs, outputs and current opportunities
Pre-Kaizen – Walk the Process (GEMBA)
• Interview SMEsInterview SMEs
• Ask Probing questions
• Build SIPOC and Process Map based
on real time observations
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on real-time observations
• Document issues and opportunities
Conduct data analysis to understand current trends and identify potential root causes
Pre- Kaizen – Conduct Data Analysis
• Analyze the data
• Look for trends and opportunities
• Define measurement targets
• Use statistical tools to
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validate current data (Run charts, Pareto, Hypothesis Testing, Regression)
Source: HR DirectInitials: LKL8-19-2016
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KAIZEN Timeline
Kaizen preparation is important for the success of the event
8 6 4 1Weeks Prior to Event
4+1+
o Define problem o Identify scope o Select participantso Create charter o Identify metricso Select event dates
& location
o Collect data to understand current performance
o Interview SMEso “Walk the
process”/ GEMBAo Determine
o Meet with core team to review data
o Finalize data analysis
o Present initial findings to sponsor
o Establish meeting
o Arrive early to setup room & test presentation equipment
o Establish flip charts for “Parking Lot”,
Event Day Post KAIZEN
o 30/60/90 day check-in
o Lesson learnedo CELEBRATE!!!o Measure the
effectiveness of improvements –
6 to 8 weeks 4 to 6 weeks 1 to 4 weeks
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o Forward “Save the Date” meeting invite to attendees
objectives (SMART goals)
o Confirm Event date and time with attendees
agenda for Kaizen event
o Inventory required event materials (sharpies; post-its; flip charts, etc.)
o Forward an Event calendar reminder
“Action Items”o Help team create
a Code of Conduct
o Designate roles for individuals
did the team accomplish what they set out to do?
Review the agenda with the team to illustrate the day’s activities
Kaizen Blitz – Sample Agenda
• Introductions
• Designate Roles (Parking Lot, Timekeeper)
• Develop Code of Conduct
• Review VOC
• Validate Customer Requirements/Expectations
• Create and review Current State vs. Future State process
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maps
• Brainstorm solutions / identify opportunities for improvement
• Review Data Analysis
• Create Action Plan
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The team leader should choose the appropriate tools that best suit the problem being addressed
Lean Tools
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Do we use ALL the Lean tools? No - we pick and choose the most appropriate ones!
Value Stream mapping is a tool used to show how activities, information, and “value” flow to the customer
Value Stream Map Example
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The 8 Deadly Wastes
TT Transportation
II Inventory
Process Improvement – Identify and Eliminate the Waste
y
MM Motion
TT Talent (Intellect)
WW Waiting
OO Overproduction
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MUDA – Japanese word for waste [see APPENDIX “A” for TIMTWOOD examples of waste]
OO Over-Processing
DD Defects
• Unnecessary movement of things in the process increases risk of damage or loss
Transportation
Process Improvement – Identify the Waste
of damage or loss
• Examples:– Unnecessary movement of paperwork and equipment
– Often linked to poor office/work-site layout
– Using Internal Mail / Fax to hand over work to colleagues
– Moving supplies to warehouse that will later be sent to customer
– Copying data from one system to another
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• Storing unneeded items for later use.
• Inventory ties up money, uses valuable working space, and
Inventory
Process Improvement – Identify the Waste
y p y g pincreases the risk of obsolescence and/or damage
• Examples:– Extra brochures are printed ‘just in case’ we need them
– Stationary is ordered annually and stored
– Piles of ‘Work In Progress’ exist between process steps
– Physical storage of completed documents
– Multiple instances of data exist. If it needs to be updated, then needs to b d i lti l l ti
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be done in multiple locations
• Unnecessary movement of people increasing time, frustration, and risk of injury
Motion
”Process Improvement – Identify the Waste
• Examples:– Inefficient office layout, work teams not co-located
– Client files moved to storage while still being used
– Only one copier on each floor
– Searching for wrench in a work cell
– Shuffling papers around the desk to find a form
– Information that is keyed or captured is not used
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Information that is keyed or captured is not used
– Meetings, phone calls, emails, etc. are a result of miscommunication
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• A visual drawing of the actual Product, Paper , People, and / or Eq ipment ork flo
Motion – Spaghetti Diagram
Process Improvement – Identify the Waste
Equipment work flow
• Use a spaghetti diagram to record transportation of goods and/or motion of people to find opportunities to eliminate waste
• For clarity, use a different line type, line color, or separate map for each object tracked
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Source: GRS Crane field set up process
• Underutilization of a worker's knowledge and talent
• Being employed in the wrong position
Talent
Process Improvement – Identify the Waste
Being employed in the wrong position
• Employee does not receive necessary training
• Employee does not receive necessary equipment or tools
• Underutilization of people’s skills and abilities
• Examples:– Overlooking or not knowing about expertise within the organization
– Ignoring suggestions of co-workers in the process
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– Micromanaging people’s work
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• Inability to perform work due to unavailable inputs from suppliers
Waiting
APPENDIX “A” Process Improvement – Identify the Waste
• Examples:
– Colleagues not able to perform work as system is down
– Only one piece of equipment (fax) available for department –often in use
– Waiting (delays) for decisions before being able to continue work
– Waiting on batch report to process payroll
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• Producing more than is needed or required and producing earlier than required
Overproduction
Process Improvement – Identify the Waste
• Overproduction ties up working capital and hides process and quality problems
• Examples:– Process produces defects, so output is increased to ensure we produce
enough quality items
– Running or creating reports that are never used
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• Too many steps in a process
• Process steps that add no value to the process or make the
Over-Processing
Process Improvement – Identify the Waste
• Process steps that add no value to the process or make the process harder than it needs to be
• Examples:– Repeat entries of the same information by different people
– Information is requested/sent (email everyone when not required)
– Performing work that goes beyond expressed specifications
– Requiring multiple unnecessary reviews or approvals
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• Errors that result in a product or service that does not meet customer expectations. Defects include the waste of rework and correction
Defects
Process Improvement – Identify the Waste
and correction.
• Examples:– Errors in process are allowed to move to the next process step without
finding preventive solution
– Orders are checked 5 times before sent to the customer
– All orders are 100% checked vs. sampled
– Wrong forms used
– Repair parts not to specification
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Repair parts not to specification
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• Remember TIMTWOOD
Practice Exercise
• Provide an example of each type of waste in your business:
T _____________________
I _____________________
M _____________________
T _____________________
W _____________________
O
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O _____________________
O _____________________
D _____________________
5s is a Lean tool used for workplace organization
The 5s process
1Sort
5Sustain
2Set in Order
4Standardize
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3Shine
A place for everything ~ AND everything in its place
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5s is a.k.a “5s plus 2” – Safety & Security
SET IN ORDERSET IN ORDER
SHINE
STANDARDIZE
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SECURITY
SUSTAIN
It’s all about Visual Management
Using Color As a Control Measure for Efficiency & Safety
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COLOR CODING SYSTEM
STORAGE / PLACEMENT
ISLE MARKERS
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Poka Yoke is an error proofing method to improve processes
We See Examples of Poka Yoke Everday
Carbon Monoxide Monitor
Garage door sensors
Gas Pump Cutoff Level
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Monitor sensors Level
Shadow Boarding our work tools makes us and our processes better, faster, more efficient!
Inventory Control at a glance
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Tool shadow board Equipment box casing
Tool box casing
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Why would we 5s our electronic folder structure?
“BEFORE” electronic document folder structure
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So we can increase accuracy and efficiency
“AFTER” applying 5s principles
1st Level Drill Down By Year
2nd Drill Down
By Month
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FINALLY 3rd Drill Down
By Sub-Report Data
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Process Mapping
“We don’t know what we don’t know, and we won’t know until we map the out the process…” – Dr. Mikel Harry
• Provides a visual sequence to the process activity steps
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• Provides a visual sequence to the process activity steps
• Identifies who is responsible for each activity step
• Uncovers costly errors resulting in rework
• Allows the team to designate activity steps as:
• value add (VA),
• business value add (BVA) and
• non-value add (NVA)
All activities in any process fall into one of the following categories:
V l Add (VA) N t Business Value Add (BVA) –
Value-Added Activities
What distinguishes Value-Add from Non-Value Add?
Value-Add (VA) – No waste
Value-add activities must meet allthree criteria. They must:
1. Add form, features or function to a product or service –physically change it
2. Be done right the first time AND
Business Value Add (BVA) Waste we are willing or required to live with
Activities that are required for financial, legal, or other business reasons. Often called value enabling activities
Non-Value Add (NVA) – Pure t
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3. Be something the customer is willing to pay for
waste
Everything else!
At least 75%-90% of activity in most processes is waste
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Identifying NVA & VA (Waste)
Current Process
Customer Need Business Need Waste
Value Added Value Enabling Non-Value Added
Lean Process
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Customer Need Business Need
Value Added Value EnablingWASTE
To lean out a process – identify waste and remove it!
The Affinity Diagram (KJ Analysis)
Now let’s look at “why our process is having problems”? Let’s use the KJ Analysis…
Kawakita Jiro (inventor):1. Identify what you are trying to
achieve2. Team members write all ideas on
3" x 5" cards or Post-its3. Key principle - everyone works
together in silence4. After all ideas are exhausted
individuals then group similar ideas together• Members are allowed to
i if i i
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move post-its – even if it is someone’s idea else
5. Once team members stop adding or moving ideas into similar groups stop to discuss how to group them under header/categories
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EXAMPLE:
Completed Affinity Diagram of a company’s exit interview process
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Fishbone a.k.a. Ishikawa diagram
Root Cause Analysis – It’s all about the 5 “Whys”….
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• Uncovers potential root causes of a specific issue or failure within a process
• Identifies potential factors causing an overall effect
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• When it’s time to implement the solutions generated in the Kaizen Event
• Start with an Ideal State process mapSi l t k th "C t St t " f ti l VSM d
We found the root cause to our problem, now let’s create a Future State Map
– Simply take the "Current State" functional map or VSM and eliminate non-value adding events
– Provides a benchmark of what could be possible and encourages out-of-box thinking
• Then create the proposed Future State process map– Bridges the gulf between the current and ideal states
– Incorporates the realities of technical
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limits, budgets and time
– Documents how the solutions will be
implemented in the new process
What activities take place after the Kaizen event?
Post Kaizen
The Action Plan created should include:
• Specific Action items with detailed milestonesSpecific Action items with detailed milestones
• Identifies POC (point of contact)
• Un-resolved action items
• Target Due Dates
• Final results
• Actual Completion Dates
• A structured communication plan:
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• Schedule re-occurring meetings to track action items
• Conduct 30/60/90 check–in with Project sponsor
Be sure to track the primary metric!
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Kaizen Team Final Presentation
• Tells the story about how the team progressed from the Define phase through to Improve
U ll d li d b th K i t t l d hi th l t d f th
Out Brief Team Participants and Sr. Management
– Usually delivered by the Kaizen team to leadership on the last day of the event
• Informs the local management of workshop findings and solicits approval to proceed with implementation plans
• Formalizes expected results and clearly communicates ownership of open action items and result sustainment
• Provides the opportunity for management to publicly congratulate team members and express appreciation for their dedicated
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team members and express appreciation for their dedicated teamwork
This is a good time to obtain management approval to implement improvements
Remember these two important points….
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Improvements made today can always be improved upon tomorrow and failures are lessons learned
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May the FORCE be with May the FORCE be with you and remember to…you and remember to…
Q & A
OPEN FORUM
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